TUR - Strong Operating Performance Still Getting Turkcell Nowhere Fast

• Turkcell continues to do a little better than expected, with fourth quarter revenue and EBITDA modestly above expectations, but share growth, ARPU growth, service growth, and good margins go unrewarded.
• Management is upping its 2021 capex spending to connect more households to fiber, and continues to prioritize the expansion and growth of digital services like IPTV and mobile payment.
• Turkcell shares still look meaningfully undervalued on high single-digit revenue growth, improving revenue mix profitability, and double-digit long-term FCF growth.
• Turkcell shares have languished despite solid operating performance and low valuation, and investors need to be aware of the value trap risk.

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